• Health insurance plans have different types of coverage when it comes to medicine.medikamente image by Daniel Fuhr from Fotolia.com
  
  Five major types of health insurance are available in the U.S. These include traditional health insurance; Health Maintenance Organizations, or HMOs; Preferred Provider Organizations, or PPOs; Point-of-Service plans, or POSs; and Exclusive Provider Organizations, or EPOs. There are slight differences between the plans, and it's important to understand each of them so you know what your coverage options are.
  
  

Traditional

• Traditional health insurance plans offer maximum flexibility because you can pick any doctor you like, and visit a specialist without the permission of your primary care physician, or PCP. A primary care physician is a doctor who provides your basic, everyday medical services. In a traditional plan, you have to spend a pre-determined amount, or "deductible," each year before your insurance coverage kicks in. Traditional plans tend to be more expensive than other types of plans.
  
  

Health Maintenance Organization

• HMO plans generally ask that you choose a primary care physician who is part of their network of physicians. Most HMOs require approval from your primary care physician before you can see a specialist, if you want the visit to that specialist to be covered by the insurance plan. HMOs don't have a pre-determined deductible amount; rather, you pay a "co-pay" for each treatment, which is a fixed dollar amount depending on the type of medical service you receive.
  
  

Preferred Provider Organization

• PPO plans are more flexible than HMO plans but not as flexible as traditional plans. In a PPO plan, you can choose to visit whatever health care providers you choose; however, certain doctors that are "in-network" will result in a lower co-pay amount. PPOs generally offer more coverage than HMO and traditional plans.
  
  

Point of Service

• POS plans are essentially a combination of HMO and PPO plans. You choose a primary care physician within the insurance company's network, and pay a small co-payment for treatments from this physician, similar to an HMO. However, in a POS plan you can also visit a health care provider that's out-of-network if you pay a percentage of the fee.
  
  There may be restrictions on the services you can receive outside the network with a POS plan. For example, prescription drugs, organ transplants, treatment for infertility, and mental health services may not be included.
  
  

Exclusive Provider Organization

• EPO plans are similar to both POS and HMO plans. In an EPO, you choose a primary care physician who's in the insurance company's network. However, out-of-network benefits are reduced, so there's a strong incentive to visit in-network physicians for treatments.